Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open HSBC futures and option contracts in existence after the market close on 11 March 2009, the business day immediately before the ex-rights day, which is 12 March 2009, to account for HSBC’s five for 12 rights issue.
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
HSBC Futures
Adjustment Procedures
Adjustment will be made to the open positions of HSBC futures contracts which exist after the market close on 11 March 2009, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:
Trading of Adjusted and Standard Contracts
After the market close on 11 March 2009, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-rights day, 12 March 2009. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below:
Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
HSBC Options
Adjustment Procedures
Adjustment will be made to the open positions of HSBC option contracts which exist after the market close on 11 March 2009, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:
Trading of Adjusted and Standard Contracts
After the market close on 11 March 2009, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-rights day, 12 March 2009. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below: